Congress has published a report on pressure on crypto companies during the Biden administration.
Date: 2025-12-03 Author: Henry Casey Categories: BUSINESS
The House Financial Services Committee, chaired by French Hill, released a detailed report examining the practice dubbed "Choke Point 2.0." The report asserts that, under the Biden administration, several federal agencies effectively created an unfavorable environment for digital asset companies, leading to their mass expulsion from the banking system.
The report's authors claim that agencies such as the SEC, Federal Reserve, FDIC, and OCC, relying on expanded powers and informal recommendations, limited banks' ability to collaborate with crypto projects. According to the congressmen, regulators cited potential risks associated with digital assets, but often acted without clear public rules. The report notes that regulators in some cases "persuaded financial institutions to avoid dealing" with the digital asset industry, creating an atmosphere of uncertainty and increasing pressure on the sector.
According to the Committee, such actions resulted in at least thirty companies and individual founders of crypto firms being denied banking services. The document cites instances in which the FDIC sent so-called cease-and-desist letters to banks advising them to suspend the launch of crypto products, and the Federal Reserve launched enhanced oversight programs, complicating interactions between banks and the crypto sector. The SEC, it is alleged, favored enforcement over developing transparent regulations.
The report's authors point out that, despite the Biden administration's concerns regarding AML and CFT, regulators themselves acknowledged that the use of digital assets for illegal activities is significantly smaller than the use of traditional currencies. However, the Committee believes that this pressure nevertheless led to a slowdown in the development of crypto startups and the exodus of some entrepreneurs from the United States.
Interest in the topic of debanking arose in late 2024, when French Hill announced his intention to investigate regulators. Representatives of Anchorage Digital and the Stellar Development Foundation confirmed the issue during hearings. Following the change in administration, the Committee notes that the new leaders appointed by Donald Trump began to roll back regulations in place under the previous president.
The report emphasizes that studying the experience of Choke Point 2.0 is important to prevent the recurrence of such practices and the emergence of new forms. Policy toward the crypto industry became a campaign theme: in March 2025, Donald Trump announced his intention to stop using the banking system as a tool to pressure crypto businesses.
The Committee believes that improving the regulatory environment and changes in the SEC leadership are already contributing to the return of innovation and the growth of crypto startups in the United States.
